Q1 2024 Haverty Furniture Companies Inc Earnings Call Transcript
Key Points
- Haverty Furniture Companies Inc reported strong gross margins of 60.3%, indicating efficient cost management and product mix.
- The company has a robust balance sheet with over $100 million in cash and no funded debt, providing financial stability and flexibility.
- Haverty Furniture Companies Inc announced a 6.7% increase in its quarterly dividend, marking the 12th consecutive year of dividend increases.
- The company is expanding its store presence, with plans to open five new stores in 2024 and another five in 2025, enhancing market reach.
- Haverty Furniture Companies Inc is leveraging its strong locations and brand awareness to establish new stores in strategic markets at below-market rates.
- Q1 sales decreased by 18.1% to $184 million, and comparable store sales were down 18.5%, reflecting significant market challenges.
- Total written sales declined by 12.6%, indicating a decrease in customer orders and potential future revenue challenges.
- The broader furniture industry is experiencing significant disruptions, with many major manufacturers and retailers failing, which could pose risks to stability and supply chains.
- Store traffic continues to struggle across all markets, although there was a slight improvement in February and March.
- Despite strong gross margins, net income significantly decreased to $2.4 million in Q1 2024 from $12.4 million in the same period last year, largely due to lower sales volumes.
Good morning, ladies and gentlemen, and thank you for standing by, and welcome to Haverty's First Quarter 2024 earnings call. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Richard Hare, Chief Financial Officer.
Thank you, operator. During this conference call, we'll make forward-looking statements which are subject to risks and uncertainties. Actual results may differ materially from those made or implied in such statements, which speak only as of the date they are made and which we undertake no obligation to publicly update or revise the factors that could cause actual results to differ include economic and competitive conditions and other uncertainties detailed in the Company's reports filed with the SEC.
Our Chairman and CEO, Clarence Smith will now give you an update on our results and our President. Steve and Ed will provide additional commentary about our business.
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